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A rash of companies, led by household names Caterpillar (CAT), 3M (MMM) and Target (TGT),...

A rash of companies, led by household names Caterpillar (CAT), 3M (MMM) and Target (TGT), crowded the bond market today with nearly $6B in offerings, seizing on an opportunity to borrow before Europe blows up and with QE3 at least still on the table in the U.S. Among other big borrowers: TOT, WES, PXD, Y, BMR.
Comments (4)
  • Yes, companies always take on more debt just before they expect things to "blow up."
    21 Jun 2012, 03:17 PM Reply Like
  • Or more like taking advantage of low rates now before Europe blows up...AKA money moves into Treasuries and likely spillover into strong corporates like 3M & CAT.
    21 Jun 2012, 05:08 PM Reply Like
  • Smart planning, especially for CAT. If Europe "blows up" and some great buying opportunities come about, cash is king + doesn't dilute equity. And given the potential shakiness of the Euro, $$$ are acceptable. CAT may be eying another acquisition that enhances their global footprint. and strengthen their long-term dominance in several realms. Start looking in France - a possible next troubled country.

     

    And if Illinois doesn't get their s--- together, the corporate HQ as a minimum might move. They've been warned.
    21 Jun 2012, 05:48 PM Reply Like
  • dana:

     

    Nah, Illinois needn't worry about CAT moving. The Government now following the Boeing model, making moves for economic advantage illegal. Constitution? What Constitution?
    21 Jun 2012, 05:51 PM Reply Like
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